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Vaccination mandate could worsen supply chain crisis, CEO says

2021-10-27T01:19:54.104Z


The CEO of Raytheon Technologies warned Tuesday that the supply chain could suffer even more once the vaccination deadline for federal contractors is met.


They protest in New York against mandatory vaccination 3:39

New York (CNN Business) -

The Biden administration's vaccination mandate for federal contractors will create even more disruption to already stressed supply chains, Raytheon Technologies warned Tuesday.

Raytheon, a conglomerate that makes jet engines, missiles and drones, joins a growing list of business groups expressing concern about the Dec. 8 deadline for all federal contractor employees to be vaccinated.

  • New vaccination mandates could apply to 100 million Americans

"We certainly expect some disruptions to both the supply chain and our customers as a result of this," warned Raytheon CEO Gregory Hayes, during a conference call with analysts on Tuesday.

"But we are going to work to overcome it."

Hayes pointed to a number of problems that are straining supply chains right now, including shortages of components and materials, as well as rising prices for aluminum and steel.

"It is more difficult for the material to arrive on time. We are also seeing, of course, the labor shortage in our supply chain, which is also slowing the entry," Hayes said.

"I think it's going to be an ongoing problem in the next year. And the vaccine mandate is probably not going to help."

  • What are the main products affected by the crisis in the supply chain?

However, Raytheon believes that his business can benefit from the vaccination mandate.

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"Higher vaccination rates will continue to increase confidence in the safety of air travel in the future," Neil Mitchell, Raytheon's chief financial officer, said during the call.

The CEO also said the same thing last month when discussing the rebound in air travel.

"I think last week's term of the president on the vaccine is only going to strengthen the outlook as we move into the fourth quarter, so we are not discouraged yet," Hayes told the Morgan Stanley Laguna Conference.

  • "My body, my choice", this is how New York workers oppose the mandatory covid-19 vaccine

Meanwhile, the American Trucking Associations is scheduled to meet with the Office of Management and Budget on Tuesday to discuss their concerns about Biden's vaccination mandate.

The largest trucking union warned in a letter last week that more than a third of truck driver jobs at major U.S. companies could be lost through retirement or changes to smaller trucking companies. or by becoming independent contractors if the rule does not provide exemptions for the transport sector.

The National Association of Wholesalers-Distributors (NAW), an influential union representing an industry with nearly 6 million workers, wrote a letter last week pleading with management to delay the deadline. December 8.

"If tens or hundreds of thousands of employees are laid off just two weeks before Christmas, the result could be catastrophic for the newly unemployed and their families and for the US economy," wrote Eric Hoplin, president and CEO of the NAW. , in a letter to Biden on Wednesday.

Other business leaders have been more optimistic.

Southwest Airlines CEO Gary Kelly this week expressed confidence that the vaccination mandate will not disrupt travel.

"We want our employees to know that no one is going to lose their job on December 9 if we don't comply fully," Kelly said Thursday.

Biden's decree, signed last month, requires employees of contractors doing business with the federal government to get vaccinated against COVID-19, with no option to undergo periodic tests not to do so.

The decree, which also applies to subcontractors, aims to prevent the spread of covid-19.

Last week, Biden officials responded to concerns about the impact of the vaccination mandate.

"The vaccination requirements are working. They have increased vaccination rates by more than 20 percentage points, to exceed 90% in most organizations," Jeff Zients, coordinator of the coronavirus response for the United States, told reporters last week. the administration.

Zients noted that the first step for employees who do not get vaccinated is an "education and counseling period," not firing.

"The requirements for federal workers and contractors will not cause disruption to the government services that people depend on," Zients said.

"Agencies have the flexibility to enforce the mandate without affecting critical operations."

supply chain covid-19 vaccine

Source: cnnespanol

All news articles on 2021-10-27

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